XML 103 R15.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Goodwill and Identifiable Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2014
Goodwill and Identifiable Intangible Assets | 6. Goodwill and Identifiable Intangible Assets We had goodwill of $1,467.8 million and $1,433.8 million as of December 31, 2014 and 2013, respectively. The increase of $34.0 million was primarily due to the acquisitions of Anaheim Manufacturing Company and SentrySafe. The change in the net carrying amount of goodwill by segment was as follows:
(In millions) |  | Cabinets |  |  | Plumbing |  |  | Doors |  |  | Security |  |  | Total Goodwill |
Balance at December 31, 2012(a) |  | $ | 491.8 |  |  | $ | 569.7 |  |  | $ | 143.0 |  |  | $ | 90.8 |  |  | $ | 1,295.3 |
2012 translation adjustments |  |  | (2.4 | ) |  |  | — |  |  |  | — |  |  |  | (1.4 | ) |  |  | (3.8 | )
Acquisition-related adjustments |  |  | 142.3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 142.3 |
Balance at December 31, 2013(a) |  | $ | 631.7 |  |  | $ | 569.7 |  |  | $ | 143.0 |  |  | $ | 89.4 |  |  | $ | 1,433.8 |
2013 translation adjustments |  |  | (2.7 | ) |  |  | — |  |  |  | — |  |  |  | (1.4 | ) |  |  | (4.1 | )
Acquisition-related adjustments |  |  | 1.1 |  |  |  | 25.9 |  |  |  | — |  |  |  | 11.1 |  |  |  | 38.1 |
Balance at December 31, 2014(a) |  | $ | 630.1 |  |  | $ | 595.6 |  |  | $ | 143.0 |  |  | $ | 99.1 |  |  | $ | 1,467.8 |
(a) | Net of accumulated impairment losses of $399.5 million in the Doors segment.
We also had identifiable intangible assets, principally tradenames, of $656.5 million and $628.9 million as of December 31, 2014 and December 31, 2013, respectively. The $38.6 million increase in gross identifiable intangible assets was predominantly due to the acquisition of SentrySafe. The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2014 and 2013 were as follows:
|  | As of December 31, 2014 |  |  | As of December 31, 2013 |
(In millions) |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |  |  | Gross Carrying Amounts |  |  | Accumulated Amortization |  |  | Net Book Value |
Indefinite-lived intangible assets — tradenames |  | $ | 542.7 |  |  | $ | (42.0 | )(a) |  | $ | 500.7 |  |  | $ | 538.8 |  |  | $ | (42.0 | )(a) |  | $ | 496.8 |
Amortizable intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tradenames |  |  | 14.6 |  |  |  | (6.4 | ) |  |  | 8.2 |  |  |  | 15.2 |  |  |  | (6.0 | ) |  |  | 9.2 |
Customer and contractual relationships |  |  | 294.2 |  |  |  | (164.0 | ) |  |  | 130.2 |  |  |  | 260.2 |  |  |  | (156.5 | ) |  |  | 103.7 |
Patents/proprietary technology |  |  | 57.7 |  |  |  | (40.3 | ) |  |  | 17.4 |  |  |  | 56.4 |  |  |  | (37.2 | ) |  |  | 19.2 |
Total |  |  | 366.5 |  |  |  | (210.7 | ) |  |  | 155.8 |  |  |  | 331.8 |  |  |  | (199.7 | ) |  |  | 132.1 |
Total identifiable intangibles |  | $ | 909.2 |  |  | $ | (252.7 | ) |  | $ | 656.5 |  |  | $ | 870.6 |  |  | $ | (241.7 | ) |  | $ | 628.9 |
(a) | Accumulated amortization prior to the adoption of revised ASC requirements for Intangibles — Goodwill and Other Assets.
Amortizable intangible assets, principally tradenames and customer relationships, are subject to amortization over their estimated useful life, 5 to 30 years, based on the assessment of a number of factors that may impact useful life. These factors include historical and tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion and other relevant factors. We expect to record intangible amortization of approximately $14 million in 2015, trending down to $10 million in 2019. We review indefinite-lived intangible assets for impairment annually in the fourth quarter, as well as whenever market or business events indicate there may be a potential impact on a specific intangible asset. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. In 2014 and 2013, we did not record any asset impairment charges associated with goodwill or indefinite-lived intangible assets. In the fourth quarter of 2012, in conjunction with our annual impairment testing, we recorded pre-tax indefinite-lived tradename impairment charges of $13.2 million. These charges were recorded on the asset impairment charges line of the income statement. The impairment charge in our Doors segment was $7.3 million and the impairment charge in our Cabinets segment was $5.9 million. These charges were primarily the result of an increase in our market-participant cost of capital discount rates. One tradename in the Cabinets segment was also impacted by reduced revenue growth expectations for high-end discretionary cabinet purchases developed during our annual planning process that was completed in the fourth quarter.

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration